The Tax Cuts and Jobs Act eliminated the deduction for qualified transportation fringe benefits. Embedded in the elimination of this deduction is the loss of a deduction for employer-provided parking facilities. In addition, new code section 512(a)(7) requires that exempt organization include the amount of qualified transportation fringe benefits provided to their employees, including the cost of employer-provided parking facilities in their unrelated business income. In December 2018, the IRS published its first guidance on this new area in Revenue Procedures 2018-99 and 2018-100. This session will unpack that guidance and review the computations required to determine the amount of the eliminated deduction or includible unrelated business income.

Learning Objectives:

• Understand the application of the four-step analytical framework found in Rev. Proc. 2018-99.


• Be able to quickly assess the likelihood an exempt organization will have a filing requirement.


• Apply the estimated tax penalty provisions of Rev. Proc. 2018-100 to avoid paying estimated tax penalties arising from failing to properly take into account the new tax liability under Section 512(a)(7).